What is order fulfillment?
Order fulfillment encompasses many factors. At its most basic, it is the process between receiving an order from the customer and when the customer receives the goods they ordered. The typical steps of order fulfillment include the following:
- Procurement
- Inventory management
- Order management
- Picking and packing
- Shipping
- Returns management
Most companies will follow these basic steps for order fulfillment. Minor changes will occur based on the type of company you run. For example, clothing companies will need to focus intensely on returns management. Companies selling perishable items will have to stay more in control of their inventory.
Ideally, you'll use a system to track order fulfillment at each stage. This means using a tool that is capable of connecting multiple processes. It will also let you reserve items and know how much inventory is on pack lists, so you aren't overselling.
Helpful resources:
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